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Hi Bruce:
I think that's a great idea! Using Spyder as a great "investment" or
"trading" market has been one of my favorite activities. One thing that
you must make sure when you open an account with any discount brokers (i.e.
Brown & Co., $5 per trade), you should be able to SELL , SPX options in
your Spyder account to work the account profitably.
When you're able to sell options, it almost becomes no lose situation. I
buy Spyder at turning points, based on my analysis of S&P market, and sell
call options at higher turning points. At the same, sell put options
against my stocks ( secured put options). So if market goes up to my
projected turning point, I'm out of some of my stocks , but collect
premiums on my put options. However, if market goes down to my projected
number and my put options becomes in the money, I simply collect the
premiums for the calls and purchased some stocks at that low price. To be
able to implement this strategy, you must have some cash reserve in your
trading account.
Spiders are a great trading ( more like position trading) market that could
be utilized nicely.
Hope was helpful.
Best, Ned.
Gandevani@xxxxxxxxxxxxxxxx
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> From: bruceb@xxxxxxxxxxxxx
> To: Omega List <omega-list@xxxxxxxxxx>
> Subject: Question for SPY traders
> Date: Wednesday, April 22, 1998 12:36 PM
>
> Does anyone happen to have some good info about Spyders in regards to the
> costs? I'm trying to figure out if passive investors would be better off
> opening up an online account with a dirt cheap broker like Datek and just
> buying SPYs, rather than putting the money in an S&P Index fund, like
> Vangard's. Vangard's fees are low but not insignificant. Any ideas?
>
> Thanks,
>
> Bruce
----------
> From: bruceb@xxxxxxxxxxxxx
> To: Omega List <omega-list@xxxxxxxxxx>
> Subject: Question for SPY traders
> Date: Wednesday, April 22, 1998 12:36 PM
>
> Does anyone happen to have some good info about Spyders in regards to the
> costs? I'm trying to figure out if passive investors would be better off
> opening up an online account with a dirt cheap broker like Datek and just
> buying SPYs, rather than putting the money in an S&P Index fund, like
> Vangard's. Vangard's fees are low but not insignificant. Any ideas?
>
> Thanks,
>
> Bruce
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